AT&T eyes speedy cable-appeal ruling

CBS.MarketWatch.com

SAN FRANCISCO (CBS.MW) -- AT&T asked a federal appeals court on Wednesday to grant speedy review of a lower court ruling that would force the company to allow Internet providers like AOL to sell high-speed service over Ma Bell's high-speed cable TV lines.

AT&T, as expected, asked the 9th Circuit U.S. Court of Appeals in San Francisco to overturn the ruling, saying that a U.S. district court in Portland, Oregon overstepped its jurisdiction. A federal district judge ruled earlier this month that Portland has the right to make AT&T open up its cable lines to competitors such as America Online
aol

The nation's biggest phone company, which is set to become the nation's largest cable operator as well, said a federal law governing the cable sector "expressly forbids" local authorities from enacting such a provision.

"Portland's cable unbundling ordinance directly violates this section of the Cable Act and several others," said Jim Cicconi, AT&T's general counsel. "The development of real competition and choice in telecommunications is a matter of national policy, not municipal prerogative."

Federal Communications Commissioner William Kennard, in a speech Tuesday, argued the same point and said the FCC is also considering an appeal of the Portland ruling. See story.

Internet service providers argue that AT&T should not be allowed to stake out a monopoly in the fledging field of high-speed cable Internet access. AT&T holds a controlling stake in At Home
ATHM, -2.16%
one of the two largest providers of high-speed cable Internet access.

The ISPs are seeking access to AT&T's lines on favorable economic terms so they will not lose customers to the likes of At Home or RoadRunner, the cable Internet service controlled by Time Warner
TWX, -0.30%
soon to be the No. 2 U.S. cable operator.

AT&T has countered that it should have the right to determine who it lets on and at what price, and says the Portland ruling will set back the introduction of high-speed cable Internet service in that city until the issue is resolved.

"The the people of Portland are missing out on the benefits of competition for high-speed services in the meantime because we can't proceed to roll out the services until this matter is resolved," Cicconi said.

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